by Mish Shedlock, Mish Talk:

Russia GDP is now estimated at +3.8 percent, topping the US, despite sanctions. What’s going on?

Russia’s War Economy

Eurointelligence discusses Russia’s War Economy

It is worth looking at the autumn forecast for Russia by the Vienna Institute for International Economic Studies, one of the best sources of economic information for central and eastern Europe. They upgraded their growth forecast for this year by 0.6pp to 3.8%. Russia is outgrowing all western economies, including the US. Growth is forecast to slow down to 2.5% next year because of the impact of a 19% interest rate. It is clear that Russia’s economic expansion is a classic case of a wartime Keynesian effect.